Question
XYZ, Inc. is considering a capital budgeting project under three scenarios. If conditions are excellent, the NPV of the project is projected to be $3,000;
XYZ, Inc. is considering a capital budgeting project under three scenarios. If conditions are excellent, the NPV of the project is projected to be $3,000; under fair conditions, the NPV is projected at $950; and under unfavorable conditions, the NPV is projected at ($600). The probabilities of these three conditions are 30%, 50% and 20%, respectively. Calculate the standard deviation rounded to the nearest whole dollar amount.
| A. | $1,084 | |
| B. | $1,184 | |
| C. | $1,284 | |
| D. | $984 |
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
